RESEARCH REPORT:
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
Student Name
A project report submitted in partial fulfilment of the requirements for the degree of
Master of Project Management (MPM)
in the
GRADUATE SCHOOL OF TECHNOLOGY MANAGEMENT,
FACULTY OF ENGINEERING, BUILT ENVIRONMENT AND
INFORMATION TECHNOLOGY,
UNIVERSITY OF ___________
____________
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 i
Abstract
Since the time Greeks began gold mining in 325 BC from the Gibraltar to Anatolian
peninsula, the gold mining always took attention of world powers in increasing their
national wealth to wage the advancement of their expedition to cover more land to
extend their kingdoms. The exploration of gold reserves takes an economy towards
prosperity and promising future growth. It contributes not only towards the national
income of the country but also brings remarkable uplift in the social sector of poor
and rich countries alike. Keeping in view all such benefits that this particular natural
resource brings for the economy, gold mining is warmly welcomed by the
governments and a huge investment is made by rich countries in this regard to
initiate new projects for the gold mining all over the world. Today, Africa is the centre
of attraction for the developed countries for their investments in the exploration of the
unexploited magnificent natural resources. Among other precious natural resources
like natural oil, gas, iron, coal, gems, etc., gold mining is of prime interest for the
direct foreign investment made in this region. Like other countries in the region,
Tanzania is also an important source of mineral extraction and is the region’s third
largest gold producer. It has exported gold of worth around US$2.54 billion during
1997-2005. This has earned the Tanzanian government around $28m every year as
royalties from mining companies as well as it widened the tax net of the country in
the result of these exports. It is also estimated that these taxes will become 6-8% of
all the government tax revenues in the coming decade. The mining activities have
made Tanzania among the African countries with largest foreign direct investment
ratios (World Gold Council, 2011).However key performance indicators such as cost
per ounce, cost per tonne and effective working man-hours have shown that the
mines are not operating optimally. This has been attributed due to mainly issues such
as working culture of the locals, lack of skills and the inherent agriculture and tourism
based economy that has dominated the country.
Keywords: social factors, interventions, mining practices, working culture, skills,
multinational firms attitude,
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 ii
Acknowledgements
The author wishes to thank Africa Barrick Gold for their support and assistance with
relevant data for this study especially the HR department for giving access to some
of the confidential information during the investigations regarding this topic.
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 iii
Table of Contents
Chapter 1: Background to the Research Study ...................................................... 1
1.1. Background of Mining: .......................................... Error! Bookmark not defined.
1.2. Tanzanian mining sector: ...................................................................................... 1
1.3. African Barrick Gold: ............................................................................................. 2
1.4. Research Objectives: ............................................................................................ 2
1.5. Strategies of research: .......................................................................................... 2
Chapter 2 : Literature Review .......................... Error! Bookmark not defined.
2.1. Introduction: .................................................................................................................................3
2.2.Tanzanian growth in mining sector:........................................................................ 4
2.3.Issues with the mining sector in Tanzania: ............................................................. 4
2.4.African Barrick Gold: Mining sector leader of Tanzania: ........................................ 8
2.5 Conclusion ………………………………………………………… 5
Chapter 3: Conceptual Method ......................................................................... 6
3.1. Introduction6
3.2. An ethical modelof indigenous organizational engagement/ integrity: ................... 6
3.3. Corporate cultureapproach of decision making: .................................................... 6
3.4. Evolution in the human resourcemanagement models: ........................................ 6
3.4.1. Toh et al. (2008) approaches for organizations: ................................................. 7
3.4.2. Worland & Manning (2005) models of HRM: ...................................................... 8
Chapter 4 :Methodology .................................................................................... 9
4.1. Introduction:…………………………………………………………………………9
4.2. Selection of methodology: ................................................................................... 13
4.3. Research Philosophy: ........................................... Error! Bookmark not defined.
4.4. Research Approach: ........................................................................................... 12
4.5. Methodological strategies: .................................................................................. 12
4.5.1. Data Collection settings: .................................................................................. 12
4.5.2. Research Instrument: ....................................................................................... 12
4.5.2.1. Quantitative Research interviews……………………………….12.
4.5.2.2. Population and samples: ............................................................. 12
4.6. Ethical Considerations: ....................................................................................... 13
5.Results ........................................................................................................................................ 14
6.Conclusions and recommendations........................................................................ 15
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 iv
References .................................................................................................................................... 16
Appendices .................................................................................................................................. 19
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 v
List of Figures
Figure 1-Survey responses against question-1 ........................................................ 18
Figure 2-Survey responses against question-4 ........................................................ 20
Figure 3-Responses against survey question-6 ........................................................ 21
Figure 4-Survey responses against question-7 ........................................................ 21
Figure 5-Survey responses against question-10 ...................................................... 23
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 vi
List of Tables
Interventions in Improving Mining Practices and working Culture in
African Barrick Gold’s Tanzanian Operations
9 July 2012 vii
List of Acronyms/Definitions/Abbreviations
Chapter 1: Background to the research study
9 July 2012 1
1.1. Background of Mining
Historically, gold has served as a global currency, a commodity, an investment and
an object of beauty. During the developments of financial markets in the 1980s and
1990s, investors resorted to financial assets such as bonds and equities at the
expense of gold (World Gold Council, 2010). However, the current financial market
turbulences or the global economic uncertainties have shifted the interest of investors
back to gold. Investors have acquired gold as a tactical asset to capitalize on its
strong potential for continuous rise in price due to strong demand and tight supply in
the gold market (World Gold Council, 2011). Moreover, investors have bought gold
as a long-term or strategic asset to preserve their wealth due to its unique
characteristics as a better portfolio performer that lowers risk while enhancing returns
and effective store of value against inflation and depreciation of the dollar (World
Gold Council, 2010). Furthermore, gold has a long history as a safe haven asset in
times of financial or geopolitical uncertainties since it does not carry credit risk and
anyone’s liability (Levin, 2006). For example, investors will not suffer from investment
risks such as non-payment of coupons or redemptions acquired as bonds and loss of
equities when a company runs out of business. In addition, unlike currency holdings,
the value of gold is unaffected by economic policies and/or inflation of the issuing
country and its 24-hour trading with wide range of buyers and investment channels
make liquidity risk low (World Gold Council, 2010).
Since the time Greeks began gold mining in 325 BC from the Gibraltar to Anatolian
peninsula, the gold mining always took attention of world powers in increasing their
national wealth to wage the advancement of their expedition to cover more land to
extend their kingdoms. The exploration of gold reserves takes an economy towards
prosperity and promising future growth. It contributes not only towards the national
income of the country but also brings remarkable uplift in the social sector of poor
and rich countries alike. Keeping in view all such benefits that this particular natural
resource brings for the economy, gold mining is warmly welcomed by the
governments and a huge investment is made by rich countries in this regard to
initiate new projects for the gold mining all over the world. Today, Africa is the centre
of attraction for the developed countries for their investments in the exploration of the
unexploited magnificent natural resources. Among other precious natural resources
like natural oil, gas, iron, coal, gems, etc., gold mining is of prime interest for the
direct foreign investment made in this region.
1.2. Tanzanian mining sector:
Like other countries in the region, Tanzania is also an important source of mineral
extraction and is the region’s third largest gold producer. It has exported gold of
worth around US$2.54 billion during 1997-2005. This has earned the Tanzanian
government around $28m every year as royalties from mining companies as well as
Chapter 1: Background to the research study
9 July 2012 2
it widened the tax net of the country in the result of these exports. It is also estimated
that these taxes will become 6-8% of all the government tax revenues in the coming
decade. The mining activities have made Tanzania among the African countries with
largest foreign direct investment ratios (World Gold Council, 2011).
1.3. African Barrack Gold:
African Barrack Gold started its exploration activities in the year 2000 and in the
duration of a decade, the firm has become among the Africa’s top 5 gold producer
firms. In 2010, the firm produced approximately 700,934 attributable ounces of gold
that established it as among the pioneers in this field. The African Barrack Gold
company is currently operating in four Tanzanian gold mines that are Bulyanhulu,
Buzwagi, North Mara and Tulawaka gold mines (African Barrick Gold, 2011). African
Barrick Gold is market leader in Tanzanian gold mining industry and provides with
magnificent dynamics for the researchers for the analysis of their operational
strategies.
1.4. Research Objectives:
The study will try to identify following factors that are obstructing the fruitfulness of
gold mining sector in the country:
a. What are the key issues in the mining industry of Tanzania in terms of mining
practices and working culture?
b. What are the social factors contributing to the mining practices and working culture
in African Barrick Gold' Tanzanian Operations?
c. What interventions can be adopted by the human resource managers of African
Barrick Gold's to improve mining practices and working culture?
d. How effective are the identified possible intervention in yielding long term
improvement in mining practices and working culture?
1.5. Strategies of research:
To meet the desired goal of a research, the focus on the specific research objectives
is very crucial and an incorrect employment of research methodology will lead the
research towards vague literature and ambiguous conclusions. While considering the
needs and nature of the research objectives, the employment of correct methodology
ascertains that each and every process in conducting the study will be smoothly
followed as well as the desired results will gained (Buckley, Buckley, and Ching,
1975; Amaratunga, Baldry, Sarshar, and Newton, 2002). The study follows the
qualitative methodology, inductive approach, phenomenology as a philosophy, and
qualitative questionnaires are selected as the research instrument. While secondary
data is obtained by exploring different books, scholarly journals, official websites, etc.
Chapter 1: Background to the research study
9 July 2012 3
for the chapter of literature review. Ethical consideration is given due attentions and
study does not try to be libellous towards any organization or group.
Chapter 2: Literature survey
9 July 2012 4
2.1. Introduction
The mineral rich countries of African countries have seen an unprecedented direct
foreign investment in the mining sector in last few decades. These huge investments
have transformed the economic scenario of those countries and at the same time
there is a wide spread distrust is also found in the general population. The foreign
companies are perceived as plunderers of national resources and are often criticized
for their less interest in the development sector of host countries. The mining
companies require revising their mining practices and working culture to fill the trust
deficit between them and the host nations.
2.2. Tanzanian growth in mining sector:
Tanzanian economy is a perfect example of this trend where the most notable growth
is seen in the gold mining sector. It has now been regarded as the Africa’s third
largest producer of gold. Nearly 50 per cent of the export made by Tanzanians
comprises minerals and is forecasted to increase tremendously in the near future.
According to World Gold Council (2011), the contribution of gold mining in the foreign
exchange earnings of Tanzania will reach US$1.4 billion by 2012-2016 that would be
the almost double of current contribution as the gold production is forecasted to
reach 1.55 million ounces by 2012. It makes Tanzania the fastest growing country in
the fastest growing gold producer continent in the world.
2.3. Issues with the mining sector in Tanzania:
The gold mining industry is associated with water and air pollutions, human right
abuses, displacement of communities and other related impacts. Environmental
stakeholders and news media outlets in Ghana have reported about these negative
impacts of gold mining. As a result, the industry has responded by developing
several voluntary projects and programs to ensure sustainable mineral development.
These include infrastructure developments (examples: roads, clinics, schools) and
investment in the local people to acquire entrepreneurship skills through partnerships
with developmental and environmental non-governmental organizations (NGOs)
(Hilson, 2006). Environmental stakeholders and local communities still express
dissatisfaction about the operations of mines in their communities. Mining companies
have been accused of investments in local sustainability projects of their choice, non-
inclusive mechanisms of involving the concern of communities in the design of
communities development projects, and the use of one-fit all sustainable
development strategy for dissimilar communities (Hilson, 2006; Nyame, 2002).
Though globally many standards have been set for mining practices and mining
corporations have taken steps to reduce environmental impacts of mining,
contributed to local community development and have adopted CSR to ensure
workers’ welfare. Yet apart from all these, the Tanzanian mining industry is still in its
Chapter 2: Literature survey
9 July 2012 5
infancy stage and is not contributing the way as the numbers reflect in the statistics
to the economy of Tanzania. It is mainly because of the absence of effective mining
culture in the local workforce. The human resource managers of the companies,
conducting mining operations in the country, need to identify the social factors
influencing the working culture and mining practices of the workforce in Tanzania
and, once identified, to design the interventions that can improve productivity of the
companies. Implementation of any intervention would be useless without establishing
the effectiveness of that intervention in yielding maximum long-term productivity
benefits.
Beside the economic and social fruitfulness of the mining sector, it also poses some
serious implications on the society as well. Gold mining is very hazardous for the
environment as the mercury amalgamation is used for the gold extraction. It
contaminates the water of that area in the shape of Methyl mercury which is hydro-
soluble solution and thus easily contaminates the water and effect the life of the
surrounding in a fatal way (Eisler, 2004). The gold mining not only threatens the
ecological environment of an area but it also negatively contributes towards the
society as well. Though the large scale mining activities create new jobs for the
indigenous labourers but if it is analysed macro-economically, it actually snatches
employment from a large number of people if compared with the small number of
people given employment (Wilmot, 2001). It is clearly evident in the Tanzanian case
too as how the large scale mining activities became the reason for the unemployment
of large number of people. Curtis & Lissu (2008) studied that the large scale mining
activities in Tanzania has caused massive unemployment among the poorer
population that were involved in the small scale subsistence level mining activities. It
is estimated that around 400,000 Tanzanian lost their source of living with the arrival
of large scale gold mining firms. On the contrary, these large scale mining companies
have only brought estimated 10,000 in whole last decade. Out of all these jobs,
Around 8 per cent is given to foreigners from different parts of the world hired on very
high wages. It has clearly caused more unemployment and very less economic
benefits for the country. It can also be drawn from the fact that Tanzania after all the
last decade gold production activities still rank among the world ten poorest countries
where twelve million people are estimated living below the poverty line. It evidences
that the US$39 billion fortune is totally mishandled by the Tanzanians that can easily
change their destiny.
1.1. Environmental and Social Impacts
Gold production is an ecological and environmentally sensitive activity that requires
compliances with several government regulatory and environmental requirements
such as an environmental impact assessment. From the exploration to the
development of a mineral resource, mineral concession owners need different types
of licenses. In addition, there are monitoring requirements and voluntary partnerships
with local communities during operations, closure and post-closure environmental
restoration of a mine to safeguard the environment, and protect public safety and
Chapter 2: Literature survey
9 July 2012 6
health. For example, Golden Star Resources has collaborated with local communities
of its Wassa mine to form a blasting committee that ensures that blasting-related
impacts such as noise, dust and vibration are within the required standards (Golden
Star Resources, 2006). Corporate gold mining firms who are legally permitted to
mine on ancestral lands of local communities have realized that they also need to
seek the “social license to operate” from the local mining host communities before
their operations will be viable. They have therefore invested considerable amount of
money in community programs that include infrastructure and livelihood development
programs (Hilson, 2006). Mining companies have built and rehabilitated community
based schools, health facilities, roads, and water and sanitation infrastructures of
their host communities in Ghana. For example, Newmont Ghana Gold Limited
(NGGL) collaborated with local NGOs to implement programs such as youth training
in dressmaking, masonry, local business development and more within resettled
villages and other adjacent areas. NGGL has also collaborated with a local NGO
known as Concern Universal to address issues about HIV and bushfire in the
immediate communities around their operation (Anderson, 2007). Mining companies
have resettled communities who occupied their concessions to new areas in houses
with improved infrastructures, and compensate for loss farmlands. Resettlements
and compensation processes were organized through for a with participants that
include affected communities, local groups, chiefs, lawyers representing groups and
other interested participants to ensure the balance of power and transparency.
Although gold mining firms have demonstrated environmental and social
stewardships, their activities indeed have a history of environmental incidents and
social unrests due to negative impacts on environmental amenities that local
communities depend on for their livelihoods (Kumah, 2006). The environmental
impacts of large-scale mines in Ghana are principally about cyanide leakage and
spillages, land degradation and dust pollution. Gold mining operations in Ghana have
polluted rivers and streams, killing significant food and water sources of mining
communities, surrounding crops and fallow land (Armstrong, 2008; Kumah, 2006)
that have led to the relocation of households to unaffected communities. In addition,
their operations could have led to micro-contaminations from the misuse,
mishandling and storage of explosives and their residues that are used in blasting
gold bearing ores. The activities of large-scale mining companies in Ghana are
associated with incidence of combined forces of mines security, the police and the
military who violently crackdown on people protesting against the operations of
mining corporations.
Historically, most corporate mining firms in Ghana do not factor the needs of the
community in their community infrastructure and livelihood development programs.
They generally tend to make their own decisions and developed programs of their
choice (Hilson, 2006). For example, companies have implemented similar agricultural
development programs for communities instead of helping the youth to acquire skills
in more sustainable occupation such as carpentry, tailoring, blacksmithing that can
Chapter 2: Literature survey
9 July 2012 7
go beyond the mine’s operations (Nyame, 2002). There is a gradual change in this
company led approach to community development. Currently, companies such as
Newmont Ghana Gold Limited are collaborating with local communities and
developmental organization in the implementation of development projects.
Nevertheless, the degree of economic, social and environmental awareness coupled
with visible poverty levels, the history of social and environmental incidents related to
the mining of gold in Ghana have increased the discourse about the role of mining in
national development. The proliferations of news-media outlets have increased the
debate about the contribution of the mining industry to the sustainable development
of the immediate communities and the nation as a whole.
The accessibility of the internet and globalization of the news media (Smith, 2007)
easily diffuse local anti-mining issues to the global level and can affect the profitability
of a mining firm. Mining companies, therefore, have little choice but to respond in
order to protect their reputation and shareholders’ value via Corporate Social
Responsibility (CSR) practices. The concept of CSR suggests that a business has an
obligation to contribute to the interest of those affected by its operations and respond
to their desires and concerns (Yakoveleva, 2005). According to Acutt et al. (2001),
CSR in the mining industry is a mechanism for maximization of the positive and
minimization of the negative social and environmental impacts of mining while
maintaining profits.
Globally, gold mining stakeholders such as the global mining industry body,
financiers of mineral development projects and international development
organizations, have developed several CSR programs to address these concerns. At
the local level, mining companies have voluntarily collaborated with local and
international development organizations, local governments and civic organizations
to contribute to the development needs of their immediate communities. However,
local mining communities and non-governmental organizations consider such actions
from mining companies as “green wash”, a projection of a caring image without any
significant contribution to socially and environmentally business practices.
The gold mining industry is associated with water and air pollutions, human right
abuses, displacement of communities and other related impacts. Environmental
stakeholders and news media outlets in Ghana have reported about these negative
impacts of gold mining. As a result, the industry has responded by developing
several voluntary projects and programs to ensure sustainable mineral development.
These include infrastructure developments (examples: roads, clinics, schools) and
investment in the local people to acquire entrepreneurship skills through partnerships
with developmental and environmental non-governmental organizations (NGOs)
(Hilson, 2006). Environmental stakeholders and local communities still express
dissatisfaction about the operations of mines in their communities. Mining companies
have been accused of investments in local sustainability projects of their choice, non-
inclusive mechanisms of involving the concern of communities in the design of
communities development projects, and the use of one-fit all sustainable
Chapter 2: Literature survey
9 July 2012 8
development strategy for dissimilar communities (Hilson, 2006; Nyame, 2002). On
the other hand, corporate gold firms claimed compliance with the government of
Ghana’s mineral development licensing and environmental policy requirements.
Moreover, the mining firms claimed that their community development projects are
their social responsibility that should not substitute the government’s role in
developing the mining host communities. These have resulted in numerous protests
and disputes between local mining communities and gold mining firms in Ghana. In
2006, the Ghanaian government reformed its mineral and mining policy to reflect
current strategies and developments in the global mining industry, environmental
protection and community interest for the development and sustainability of mining
operations.
2.4. African Barrick Gold: Mining sector leader of Tanzania:
African Barrick Gold started its exploration activities in the year 2000 and in the
duration of a decade, the firm has become among the Africa’s top 5 gold producer
firms. In 2010, the firm produced approximately 700,934 attributable ounces of gold
that established it as among the pioneers in this field. The firm is committed to
increase its investments in the exploration and development sector and has spent
US$55million in the year 2010 which is the double of what was invested the former
year in 2009(African Barrick Gold, 2011; Curtis & Lissu, 2008). The African Barrick
Gold company currently operating in four Tanzanian gold mines that are Bulyanhulu,
Buzwagi, North Mara and Tulawaka gold mines. The average process capacity of
Bulyanhulu mine is around 3,300 tonnes of ore per day, that make c. 1.1 million
tonnes per year. It contributes 37 per cent to the overall company’s gold production.
In 2010, with 4 per cent yearly increase, it produced 259,873 ounces of gold. The
estimates show that the life-of-mine currently is 25 years. Buzwagi contributes 27 per
cent towards the overall company’s gold production. It has the processing capacity of
12,000 tonnes of ore per day. Gold production from the Buzwagi mine in the year
2010 saw a 2 per cent decrease and remained at 186,019 ounces. The current
estimates have forecasted the Life-of-mine for the Buzwagi to be around 13 years.
North Mara is another very important mine operational by the African Barrick Gold
company as it contributes 30 per cent towards the overall company’s gold production.
In the year 2010, this mine provided with the production of 212,947 ounces of gold
which is 4 per cent higher than the last year. While the Tulawaka mine contributes
only six per cent to the total company’s gold production. According to the statistics
issued for the year 2010, Tulawaka mine produced 42,094 ounces of gold as
compared to 65,926 ounces in the previous year. The life-of-mine for the Tulawaka
mine is currently estimated around till the second quarter of year 2012 but the recent
efforts of Surface and underground gold exploration has provided good results that
hint the possible extension in it. The company web portal indicates a promising future
growth of this particular mine as the West Zone of the mine is still under exploration
and only east zone is operational. The company claims that it follows strict code of
Chapter 2: Literature survey
9 July 2012 9
conduct emphasizing on the corporate social responsibility. It believes in respect of
all the applicable laws and government regulations as well as the universal ethical
principles. Company endeavours to involve the local communities in
constructive debates about their behaviour in the host nations as well as
appreciates dialogue in resolving any misunderstandings. At the same time,
company claims not compromising on the investors and shareholders expectations
and benefits (African Barrick Gold, 2011).
It all tell that the African Barrick Gold is market leader in Tanzanian gold mining
industry and provides with magnificent dynamics for the researchers for the analysis
of their operational strategies. Therefore, African Barrick Gold is selected to
represent the overall country’s mining industry to analyse their practices and working
culture to get a clear picture as well as to recommend the ways how gold mining
practices can be made more acceptable in the society of Tanzania as well as the
working culture of this specific company can be improved.
2.5. Conclusion
The foreign direct investment in the mining sector in Tanzania has put very positive
impact on the economy of Tanzania as its export revenues has increased notably
and new jobs are also recorded in the economy result in the social uplift of the
country. The review of the literature indicates the malpractices in the mining sector of
Tanzania by the multi-national companies in boosting their profits. It is also noted that
the local labourers are often neglected and the expatriates are recruited on high
wages. The profit oriented decision making also seen in the mining operations as the
destruction of environment is often overlooked and use of hazardous technique is still
in fashion. The governmental intervention is very important to monitor all the mining
operations as well as revision in the pertaining laws and regulations are also become
mandatory. The governmental intervention will compel the mining companies to take
all the local concerns seriously and to correct all the malpractices in this regard. It will
also make this lucrative sector to contribute in the social uplift of this poor country.
Chapter 3: Conceptual method
9 July 2012 10
3. Conceptual Method
3.1. Introduction
This chapter will define the general theories, models and approaches related to the
study that also constructs the thorough understanding of the research:
3.2. An ethical model of indigenous organizational engagement/ integrity:
The attitude of a multi-national firm towards the indigenous communities in the
developing countries is a matter of a hot discussion. The multi-national firms are
perceived as exploiting the wealth of host countries and often neglect local labourers
and prefer expatriate employees. This attitude develops hostilities among the local
communities towards the foreign firms that make it difficult for these firms to grow in
such circumstances. The ethical model of indigenous organizational
engagement/integrity demands the firms to establish holistic relationship with
the local communities and to keep ethics in consideration before making any
organizational decision rather only abiding by the local law to assure the
favourable environment for the organization in the host country as well as the
betterment of local communities. By adopting this model, the firm can strengthen
its footing in that particular region and can get benefited from the local skilled and
cheap labour (Crawley, & Sinclair, 2003).
3.3. Corporate culture approach of decision making:
This approach emphasizes on the participation and influence of shareholders in the
organizational decision making process and as well as the overall organizational
behaviour. The investors play the ultimate role in making corporate decisions that are
shaped on the basis of shareholder-driven capitalism approach to maximise the
corporation’s fruitfulness irrespective of any ethical violation or the opposition by
indigenous communities in the host nation. This approach increases the hostilities
among the host nation towards the multinational firms and they are often criticized for
their negative role in the country’s economy and exploitation of national resources
(Ballard, & Banks, 2003).
3.4. Evolution in the human resource management models:
In order to deal with the more challenging and diverse workforce in today’s complex
organizational environment, human resource managers are compelled to explore
new models and approaches in this regard. Throughout the evolution process of
HRM till today, no particular model or approach of HRM can be categorized as
universally ideal for every organization. Following are some famous models and
approaches for the HRM by different scholars:
Chapter 3: Conceptual method
9 July 2012 11
3.4.1. Toh et al. (2008) approaches for organizations:
Toh et al. (2008) presented four different types of approaches for the organizations
and also explained their direct implications on the Human resource management.
Approach 1: Reduction in Cost:
In this approach, the main organizational objective is to bring the costs down to shun
the prevailing market competition. This also affects the HRM negatively as little
attention is made to motivate employees through monetary and non-monetary
rewards and thus limits the employee’s participation in organizational progress.
Approach 2: Motivation of employees:
In this approach, the main organizational motive is to maximize employees’
performance by encouraging them through financial rewards. In such an
organization, the workers are more motivated that ultimately increases the
organizational capacity.
Approach 3: Development and training of employees:
In this approach, organization put extra-ordinary attention towards the development
and training of their employees to meet the market challenges but financial incentives
are often neglected. Though a skilled workforce can be prepared by adopting this
approach but retention of employees is difficult to achieve due to absence of financial
allure for the employees.
Approach 4: Involvement of employees’ commitment towards the
organizational progress:
In this approach, employees are encouraged to participate in organizational progress
and is tried to involve them in decision making so to get their commitment in
achieving targets. Employees are given capacity development training and more
opportunities to increase their role in the organizational processes. Such a model fills
the gap between upper and lower level of employees that creates harmony in an
organization.
Chapter 3: Conceptual method
9 July 2012 12
3.4.2. Worland & Manning (2005) models of HRM:
Worland & Manning (2005) presented two core approaches for the HRM following the
trends previously presented by Storey (1989), and Ahmed & Kazmi (1999).
According to them, there are two approaches can be followed for the management of
human resource that they named as hard one and the soft one. In the ‘hard’ model,
the organization follows more strict policies in controlling the costs without
compromising on the organizational targets. It puts more emphasis on strictly limiting
the number of employees according to the operational requirements and expects
each and every employee to be capable of delivering results up to his maximum
capacity. While in the ‘soft’ approach, it puts exclusive emphasis on the social
aspects in HRM and the significance of organizational integration, employees’
participation, inter-organizational communication, employees’ motivation, etc. are
well understood. This model considers HRM as a core contributor for the progress
and development of organization.
Chapter 4: Research design and methodology
9 July 2012 13
4. Research design and methodology
4.1. Introduction
The success of a research is totally dependent on the employment of correct
and appropriate methodology. As the methods and the techniques that a
researcher opts for the data collection, analysis, theory development, etc.
determine the success of his efforts in meeting his objectives. So it can be
said that the methodology in conducting a research is basically going to
ascertain the compliance of research with its objectives (Bryman, 2008;
Ethridge, 2004).
Understanding the significance of correct and proper employment of
methodology and its affect to the research objectives, this chapter is
specifically categorized to ensure that a thorough effort is made in selecting
the methods and approaches to conduct this particular study. This chapter will
not only explain the methods used in conducting the research but also will
justify their employment by comparing different techniques and their
implications on the research conclusions and results. Beside the basic
approach and instrument for the research, other constituents like the research
philosophy, analysis technique, population, time frame, etc. are also included
to prove the concrete efforts been made in providing with the quality research.
It is also useful to note that the route chosen for the successful completion of
the research and satisfactory encompassing of the participant’s replies to the
selected research questions was multi-oriented. For the accommodation of
every aspect of the topic, both empirical and non-empirical data from the
primary and secondary sources were required in the study.
4.2. Research Philosophy:
Research philosophy is main foundation of any research. It determines the direction,
to which whole research would move on. Mainly, there two basic philosophies:
phenomenology and positivist. Former is subject and latter is objective in nature.
Phenomenology is constructed on detailed observations of one’s own experiences
and informal behaviour, secondary careful analysis and collection of interpretations
(Sion, 2003). Positivist philosophy is a structured method, in which data is numerical
in form and viewed through statistical analysis.
This study is mainly phenomenological in nature, but there were certain queries of
the researcher which emphasized to use the mixed philosophy. Hence, some parts of
research instruments carry the flavour of positivist philosophy.
Chapter 4: Research design and methodology
9 July 2012 14
4.3. Research Approach:
Inductive approach and Deductive approach:
It is important to note, when researchers choose certain philosophy, their approach o
research get automatically set for them. It means that inductive approach follows
phenomenological, and deductive approach is associated with positivist philosophy.
In academic research, inductive and deductive are those two approaches which
widely use by researchers of different field.
As it has been mentioned that this study is mainly phenomenological in nature,
therefore inductive approach has main role in it. But, the researcher also used certain
aspects of positivism; therefore, it is necessary to explain deductive approach too.
According to Babbie (2010), in Inductive approach, reasoning starts from a specific
theory and ends at a general theory. In this approach, the efforts are made to derive
a theory out of certain observations with the help of selected research instruments
and the data analysis techniques. The study is concluded on the basis of human
expressions therefore are not purely concrete and contains uncertainty but not
ambiguity (Crowther & Lancaster, 2008). On the other hand, Trochim (2006)
described deductive approach that it is used to verify already existing hypothesis. In
this approach, researcher proposes the research questions. After that data is
collected through certain research instrument which later helps to verify or nullify the
hypothesis. In either way of confirmation or rejection, the validity of theory is
measured.
4.4. Selection of methodology:
With reference to details mentioned in above lines, it would be correct to say that the
researcher has used mixed methodology. It contains the elements of both qualitative
and quantitative data. The qualitative methodology due to its explanatory
characteristics is an ideal way to collect the human narratives about a particular issue
for the study. It is a rich methodology for conducting a research in which the
descriptive explanations develop the understanding of the topic and ultimately makes
research more comprehensive (Plano, Clark& Creswell, 2007).
Qualitative approach is very appropriate for exploring people’s experiences,
behaviour and rational towards a particular issue which is the pre requisite for the
clear analysis and accurate conclusion (Kumar, 2008; Krauss, 2005). Oakley (1999)
described the quantitative method that it is more related with facts and figures. It is
quite objective in nature and its measurements are conducted within the boundary of
forced environment. It does not require any point of view, rather deals with the course
of cause and effect. It is far more consistent and can be indiscriminate in nature, on
certain population or society. Therefore, its data is replicable and its authenticity is
Chapter 4: Research design and methodology
9 July 2012 15
unwavering. It does not deal with people’s backgrounds, their perspectives and
beliefs.
CONCEPT DEFINITION PHENOMENOLOGY POSITIVISM
Ontology Researcher’s
belief about nature
of reality
Socially-constructed; built
with experience; multiple;
subjective; reality (life-world)
and person (researcher) are
undetectable; knowledge of
the world is constituted
through a person’s lived
experience
Independent of social
actors; objective; reality
and person (researcher)
are distinct and
separate; objective
reality exists beyond the
human mind
Epistemology Researcher’s
belief of what
knowledge is
acceptable
Subjectively built opinions;
details of situation; Subjective
meanings motivate action
Observable phenomena
bear credible data;
deductively acquired
results
Axiology Researcher’s
belief of effect of
her/his values on
research
Values necessarily affect
research
Research is value-free;
researcher is
independent of the data
Data
Collection
Techniques
Techniques and
methods used
commonly to
collect data
Comparatively smaller
sample; layered investigation;
qualitative
Usually large sample;
usually quantitative;
measurement
Data Analysis
Methods
Methods used
commonly to
Hermeneutics;
phenomenology; thematic
Statistics; content
analysis; mathematical
Chapter 4: Research design and methodology
9 July 2012 16
analyse collected
data
analysis relationship
Validity Quality of data to
bring valid
answers
Defendable knowledge
claims
Certainty of
measurement correction
Reliability Quality of data to
bring similar
answers on
multiple exercises
Interpretive awareness:
researcher recognises and
addresses entailing
consequences of her/his
subjectivity
Reliability: research
results can be
reproduced.
Table I: Key Concepts of Methodology in Phenomenology and Positivism
(Sources: Easterby-Smith et al., 1991; Saunders et al., 2009)
.
4.5. Methodological strategies
4.5.1. Research Instrument:
4.5.1.1. Interviews and Survey
Questionnaires and interviews are the vital research instruments in a field research to
gather first-hand views and perceptions about a certain topic (Webster, 1985). The
basic intention behind the discussion is to acquire every single emotion and
perception of the respondents related to the issue (Packer, 2010). But due to the
aspect of mixed methodology, the researcher adds little survey like questions in
interview. These questions are related to those aspects which were objective nature,
and there could not be any opinion or view build upon them.
4.5.1.2. Population and samples:
As the research is mainly related to African Barrick Gold, therefore, the researcher
selected the employees of this company. Almost 100 people have been contacted by
researcher, from which 50 replied. Some gave interview shortly on phone, some
mailed their answers, and some emailed their response to the researcher.
Chapter 4: Research design and methodology
9 July 2012 17
4.5.1.3. Data Analysis
The researcher analysed the interview data through thematic analysis, which
measures the data by coding. However, the survey questions were analysed by
descriptive statistics. The researcher did not separate the questions of interview and
survey, rather kept them in single sheet. Hence, all respondent answered both
interview and survey.
4.6. Ethical Considerations:
Ethical considerations were given prime importance. The free consent of participants
has been ensured and the special permission from the company administration is
acquired before the research. During the interview, no effort is made to instigate the
officials for any particular response and very holistic approach is adopted throughout
the data collection period. The two most important considerations during the primary
research are the privacy of respondents and the demolition of data as soon as the
purpose of research is achieved.
Researcher’s intention while conveying and analysing the data is, to not cause any
intentional harm to the organizational reputation, only facts are communicated and
analysed. Conclusions and recommendations that have been presented are purely
on the basis of the data that the researcher was able to collect and might not match
with the findings and official data of the industry. One of the reasons for this could be
the not enough big sample size of this research.
Chapter 6: Conclusions and recommendations
9 July 2012 18
5. Results
5.1. Survey Population
As the research was on the case of African Gold, the population of current research
comprised of employees at this corporation. The author invited 100 employees to
take part in the research study. Out of these 100, a total 50 responded to the survey.
The mode of communication adopted to collect data was personal interview through
phone, written response received through mail and emails. Below is a detailed
discussion of the responses received against each research question;
Survey Question-1: Overall, are you satisfied, dissatisfied or neither satisfied
nor dissatisfied with the mining industry?
Figure 1-Survey responses against question-1
Chapter 6: Conclusions and recommendations
9 July 2012 19
Table 1-Survey responses against question-1
The first question dealt with satisfaction level of participants towards their company.
All 50 participants recorded their responses against this question. From the results it
is evident that majority of the respondents (34%) were moderately satisfied with their
company. While there were only 8% who were extremely satisfied. Further 10 out of
50 (20%) revealed slight satisfaction with performance of company. On the other
hand, nearly 16% had no idea about their level of satisfaction, and rest were not
satisfied. It is evident from the results that mostly the employees are satisfied with the
mining industry yet the number of extremely satisfied employees is less.
Survey Question-2: What are the common complaints you hear from people
regarding the mining industry?
In second question, the researcher asked about the general complains towards
mining industry of Tanzania. The purpose to include this question in the
questionnaire was to explore the difficulties and feelings of journal people on about
mining companies. All 50 respondents came up with multiple dimensions. From the
results of the study it is evident that majority of the Tanzanians are of the view that
mining companies only care about their own profits and not about local people and
employees. Second major complaint received related to environmental degradation.
They also compared salaries with the hazardous mining workers have to face and
said the risks to workers’ life are greater and salaries packages are low. Further, high
work load on local labours along with long hours, biasness towards local staff and
their recruitment, racism and supporting whites for management and higher positions
by corporations.
Another major complain has been identified through current study is no rehabilitation
of mining areas, sexual harassment underground no developmental concern to local
community,.
Survey Question3: How can the complaints are solved?
Through this question the researcher wanted to obtain suggestions from employees
on the solutions to their problems. The results given at Annexure-B show that
participants suggested share ownership schemes for workers and staff. Also they
most of them suggested a need of better communication between government and
stakeholders. The employees also suggested that Government should monitor
Chapter 6: Conclusions and recommendations
9 July 2012 20
mining programs; those areas must be visited where workers live. Some employees
also suggested to introduce planning program and that the mining industry should
involve communities in mining programs along with raising salaries for labours’.
Training of labours and process of transparency has also been suggested.
Survey Question-4: Mining is considered as hazardous. Are you satisfied with
the measures applied to reduce harm?
This question was included in the questionnaire to explore employees’ perceptions
towards the measures applied by mining companies for reducing harms. The results
of this question have been given in Figure-2. It is evident that majority(66%) revealed
a moderate satisfaction level toward measure adopted by companies for reducing
harms. 18% were highly satisfied, while 14% showed their dissatisfaction toward
measures taken to reduce hazards in the mining industry in Tanzania.
Figure 2-Survey responses against question-4
Table 2-Survey responses against question-4
Survey Question-5: What are the ethical responsibilities with respect to
population and environment followed by gold mining companies?
Question 5 was related to the ethical consideration which gold mining companies
should adopt. Out of 50 respondents, more than 50% of respondents believed that
environmental care is the prime ethical responsibility of miners. In environmental
context, they believe that companies must leave the mining areas in earlier condition,
as it was before mining. Additionally, they should economically empower local
communities, initiate social responsibilities program and train local labours. Further
the employees demanded that mining industry should comply with international
Chapter 6: Conclusions and recommendations
9 July 2012 21
standards. They should support the communities and also should measure the
impact of mining industry on local communities by conducting health surveys. Further
the mining companies should provide the facility of medical care and education for
employees and their children.
Survey Question-6: Does your firm prefer local labour or foreign labour?
In question 6, the researcher asked about the preferences of participants’ companies
for labour hiring. Out of fifty respondents, twelve reported that their company prefers
foreign labour due to their high skills. Twenty six indicated that local labour is hired,
and rest of them informed that their company hires both local and foreign labours.
Figure 3-Responses against survey question-6
Survey Question-7: Is there any mechanism in existence to train local populous
and appoint them, instead of hiring foreign labour?
Figure 4-Survey responses against question-7
0% 10% 20% 30% 40% 50% 60%
Both
Local
Foreign
Chapter 6: Conclusions and recommendations
9 July 2012 22
Table 3-Survey responses against question-7
Previously it was complained by employees that companies mostly prefer foreigners
for management positions. Previous questions asked about the mining companies’
hiring preferences which revealed that companies mostly prefer to higher locals.
Question 7 asked the respondents to inform whether companies had any mechanism
to hire and train local labours or not. From the results shown in Figure-3 it is evident
that majority of respondents (76%) confirmed there is some mechanism of hiring and
training of local labours. The ration of respondents who disagreed to the statement
was 23%.
Survey Question-8: Does your company try to bring expatriates and local
labour closer to each other?
After that the researcher put the question that if the gold mining companies try to
bring local and foreign staff to each other. 23 respondents said that their companies
do not bring foreign experts and locals closer to each other. 24 participants gave
affirmative answers, however, 3 respondents reported that their companies try it but
not able to pursue to large extent.
Survey Question-9: What actions can your employer take to build a better
workplace?
In question 9, the researcher asked the participants about their suggestions to
generate better workplace environment. Respondents believed that Companies
should enhance the communication among stakeholders; local labour should be
given sleep accommodation, leisure activities, and reasonable salary. Teamwork
should enhance and competition among teams should inculcate. In addition, meeting
between staff and management should be increase. Foreign experts must be
introduced with local culture and languages.
Survey Question-10: Is Government trying to eradicate social problems caused
by mining?
The last question was related to government’s activities, in which the researcher
posed the question of its efforts to enhance social conditions. Here 3 participants did
not respond. Out of 47, 70% agreed that government is trying to eradicate the social
problems, but 29% rejected it.
Chapter 6: Conclusions and recommendations
9 July 2012 23
Figure 5-Survey responses against question-10
5.2. Discussion
There are some points in data which have not been discussed in literature review.
Therefore, the researcher only pointed out those points which have mentioned in
second chapter.
Question number 2 of the interview was related to general complains towards mining
industry, in which respondents more or less mentioned environmental issues, low
salaries, lack of rehabilitation, high work load and racism. Similarly, in literature
review, Eisler (2004) mentioned environmental cost of mining industry, in which
mercury is used to extract gold from earth. But in long run, it contaminates the water
and pollutes it for drinking and domestic use. In similar fashion, Wilmot (2001)
identified the social cost of gold mining. On the temporary basis, the local people get
employment and thrive. Nevertheless, at macroeconomic perspective, the large
portion of population remains deprived from employment and suffers severe poverty.
Curtis and Lissu (2008) also pointed out economic costs of gold mining in Tanzania.
They asserted that due to arrival of large gold mining industry, a huge portion of
Tanzanian population lost the job. Almost 400,000 people are without work. The
mining industry opened jobs only for 10,000 people, from which 8% jobs are reserved
for foreigners. Nearly twelve million people are living under poverty line and gold
industry did not perform any such activity which could alleviate the poverty in country.
Through literature review and findings, the researcher has evaluated that complains
of the participants are genuine in nature and also reported by renowned scholars.
Especially, the environmental issue is very significant. It only influences the natural
resources of local communities but also shape their socio-economic structure.
Question 3 was related to solutions of the problems causing by mining industry in
Tanzania. The participants believed that there should be introduction of share
ownership schemes, and no communication gap between government and
stakeholders. Similarly, mining programs must be monitored by Government,
beginning of planning programs, involvement of local communities, salary increment,
transparency, along with training of labours. On the other hand, in literature review,
African Barrick Gold (2001) has claimed that most of these measures exist in
Tanzania. The report indicated that companies facilitate the discussion and debate
Chapter 6: Conclusions and recommendations
9 July 2012 24
between local and foreigners. Constructive debates are organized to resolve
misunderstandings between both parties. Here, the researcher analyzed that there
are programs running for the welfare of local inhabitant, and some companies are
vigorously implementing them. But to large extent, most of the issues remain hidden
and cause overall hostile emotion in communities.
In question 5, the researcher asked the participants’ views towards ethical
considerations, which companies should adopt. They considered environmental care
as the prime ethical responsibility of miners. Similarly, they also believed that
companies must leave the mining areas in earlier condition, as it was before mining,
economically empower local communities, initiate social responsibility programs and
train local labours. This point has also supported by Crawley and Sinclair (2003) that
companies should build healthy relationship with local community. They must follow
local laws before taking any significant decisions in company, and must consider the
betterment of local community. In this way, companies will be able to have firm
footing in the local environment and can easily benefit from indigenous cheap and
skilled labours. Both the sources, literature review and findings, have emphasized the
verb of ‘should’. It means that there is lack of basic ethical consideration by gold
mining industry, which is causing popular unrest in Tanzania. The researcher
believes that this issue must bring in limelight among stakeholders.
The question 6 was related to the preference of companies towards local and foreign
labours, in which twelve participants reported that their company prefers foreign
labour, twenty six said that local labour is hired, while rest said that their company
hires both local and foreign labours. In this context, Worland and Manning (2005)
gave details about the ‘way’ through which man power can be used. However, no
clue has been found regarding the hiring of labours. Here, the researcher considered
it as gap between literature review and findings, and consider as important point for
further research.
In question 7 the researcher asked about the presence of mechanism through which
local labours are hired and trained. Out of 47 respondents, 76% has agreed about
the presence of mechanism. While in question number 8, the researcher enquired
about the initiatives of the companies to bridge the gaps between local and foreign
staff. Here, 23 respondents said that their companies do not bring foreign experts
and locals closer to each other. 24 participants were positive, however, 3
respondents reported that their companies try it but not able to pursue to large
extent. In literature review, Ballard and Banks (2003) discussed both issues
collectively. They believed that corporate sector has certain mechanism of taking
decisions in company, in which they prioritize the views and concerns of
stakeholders. However, they only gave the pictures of only shareholders in company.
Any decision making has strong element of benefits regarding those shareholders of
company, which might be disadvantageous for local community and hazardous for
them. This approach of decision making increases the gap between local and foreign
staff and it is responsible for local communities’ poverty and exploitation of their
Chapter 6: Conclusions and recommendations
9 July 2012 25
national resources. According to the researcher, here both findings and literature
review can be strongly linked. It is possible that due to influence of shareholders,
some companies unable to bridge the gap between two parties. It can also be
evaluate that may be due to aggressive policies of gold mining companies,
participants said that there is no attempt has been taken to bridge the gap between
locals and foreigners.
In question 9, the researcher asked about the suggestions of participants regarding
better workplace environment. They believed that communication should enhance
among stakeholders, sleep accommodation to local labours, leisure activities, and
reasonable salary. Teamwork and competition among teams should inculcate,
meetings between staff and management should be increase and foreign experts
must be introduced with local culture and languages. In literature review, Toh, et al.
(2008) suggested more or less similar measures. They believed that companies
should reduce their production cost and increase the rewards to local labours.
Employees should be motivated, trained and develop to get best results from them.
In addition, they must be given opportunities to participate in decision making of
company. The researcher evaluated that this practice will increase the level of trust
between both parties, reduce the hostility and bring them in harmony with each other.
Here both participants and experts are convinced with reform policies. The
researcher analyzed that there is strong desire to improve the working condition of
gold industry in Tanzania.
Chapter 6: Conclusions and recommendations
9 July 2012 26
6. Conclusions and recommendations
This research study examined the working culture and mining practices in Tanzania
using African Barrick Gold as case study. The results of survey conducted with the
50 employees at African Barrick Gold indicate the common view that gold mining’s
impact is uniformly negative. The findings generally suggest a mismatch between the
goals of the global gold mining industry’s social responsibility practices and local
mining communities concerns and expectations. Through this study, the researcher
concluded that conditions in Tanzania’s gold mining industry are not very positive
and healthy for local inhabitant. The data revealed the presence of wide unrest
among the workers of this industry. They believe that gold industry in polluting the
environment of Tanzania, badly exploiting the natural resources, poverty is on rise,
racism is strengthening, and pleas of workers remain unheard.
The researcher also evaluated that although government is taking certain measures
to improve the condition and remove the complaints of workers but it is not at that
wide expected level. Apart from satisfaction of some people, a huge chunk of
population is still suffering. This study has pointed out one of the most important point
that gold mining industry is not source of development in Tanzania. Rather, it seems
as big source of cause poverty in country, in which several million people are getting
unemployed.
6.1. Policy Implications of the Findings from this Dissertation
Generally, the findings provide implications for policies to improve mining practices
and working culture within the gold mining industry in Tanzania. Tanzanian gold
mining firms should be regularized to adopt social responsibility practices in order to
improve the working culture and mining practices in their facilities. To enhance their
performance and image it is necessary for them to contribute local development, take
steps to reduce environmental impact and offer better packages for workers. In this
context, government has strong responsibility to solve the issues. There is need of
policy making at government level, where the benefits of each stakeholder must be
emphasized. Government should design mechanisms to solve environmental, social
and economic problems of the local inhabitants. Similarly, it also forces foreign
companies to comply with certain local demands. There is need to make small
committees and local offices, which would take care the plight of inhabitants and also
facilitate the needs and requirements of gold mining industry. Additionally,
government should initiate the programs for training of local labour and also educate
them about self empowerment and protection of environment. Inspection committees
should devise which would inspect the working environment of gold industry and
address the issues of communities at local level.
Policy initiatives aimed at promoting the positive contribution of gold mining in Tanzania could rectify the pro-mining and anti-mining perceptions of the Tanzanian public that was established from the analysis survey responses from employees at African Barrick Gold. The researcher believes that worst conditions in Tanzania’s gold mining industry can be removed easily, if government accepts it responsibility. In
Chapter 6: Conclusions and recommendations
9 July 2012 27
addition, there is need to include the local population in the process of decision making and must remove the gaps between foreigners and former. The environmental and economic aspects of building and operating a mine such as sitting and construction of roads, digging, processing and the depletion of the ore are practical systems that affect environmental protection and economic deprivation at the community level. There is room for local action and response to manage these impacts via a routine contribution of their local knowledge, experience and perspective about a mine beyond one-time forums organized during environmental impact assessment. Hence, to mitigate these impacts, there is the need to implement good community awareness program about responsible mining practices at the community level. Such a mitigation responsibility lies with the key local government authorities. The local civic groups and their networks especially voluntary developmental organization can also empower the communities about economic practices that can enhance their livelihoods during and beyond the operations of the mines. More specifically, the authorities must raise awareness about the practices that are connected to the mine and affect the environment and economic viability of the communities especially after the mine closure.
6.2. Implications for Future Research
From the current research study it is evident that in Tanzania gold mining companies
do not have not corporate social responsibility nor they have taken steps to reduce
environmental impacts of mining. A further research can be conducted to evaluate
the scope of corporate social responsibility practices of the mining industry. Further
the implementation of international standards related to workers benefits,
environmental concern and community development can also be studied.
Generally, in order to corroborate the findings presented in this dissertation, a study
of the social responsibility practices of corporate gold mining firms should be
conducted by the use of data from field interviews and/or information from the
internet communication systems such as emails, instant messaging, and Skype.
Information retrieved by this mechanism will provide more substantive results related
to the contribution of the gold mining industry to sustainable mineral development,
which could vary according to the geographical location of stakeholders across the
globe, and among local populations in a nation based on their proximity to mining
operations and mining experience level. This proposed future data collection
mechanism could be conducted via questionnaire to verify the findings of this study
that were established from publicly available sources.
The data to be collected from the global survey of mining stakeholders would
examine how companies claimed sustainability practices in public disclosure
documents work on the ground. Given the findings that mining companies publish
their sustainability practices in annual reports and signatory to numerous responsible
mining voluntary codes and initiatives, there ought to be positive impacts from these
voluntary practices. These claims in the public disclosure documents of corporate
gold mining firms and survey of the perceptions of other stakeholders related to
mining operations can be compared for verifications. The corporate gold mining firms
Chapter 6: Conclusions and recommendations
9 July 2012 28
could use such findings to set-up operational social responsibility practices aimed at
sustainable mineral development.
References
9 July 2012 29
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Appendices
9 July 2012 33
Appendices
Appendices
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2. Appendix-A
DETM ETHICS 001
UNIVERSITY OF PRETORIA
DEPARTMENT OF ENGINEERING AND TECHNOLOGY MANAGEMENT
APPLICATION FOR APPROVAL OF A RESEARCH PROJECT
This application form must be read with the UP Code of Ethics for Research,
Regulations for Research Ethics and Integrity and the application for Engineering and
Technology Management Research Studies as approved by the Faculty Committee
for Research Ethics and Integrity on 18 April 2006.
1. Applicant’s name ANAKI KARIGANI
2. Title of research project
INTERVENTIONS IN IMPROVING MINING PRACTICES AND WORKING
CULTURE IN AFRICAN BARACK GOLD TANZANIA
3. Brief description of research project
Research Deals with ways in which to improve work performance and culture
of Tanzanian workers which is _____ an agrarian society more than a mining
society.
DECLARATION
Hereby I declare that
1. I am acquainted with the Code of Ethics for Research and subscribe to and
will apply the principles contained in this Code in all my research activities.
2. I am aware of the Regulations concerning the rules of the Faculty Committee
for Research Ethics and Integrity and honour these.
3. My research study will fully comply with the descriptions of Engineering and
Technology Management Research Studies as approved.
4. Research subjects will be informed, information will be handled confidently,
research subjects reserve the right to choose whether to participate and,
where applicable, written permission will be obtained for the execution of the
project (example of permission attached).
5. No conflict of interests or financial benefit, whether for the researcher,
company or organization, that could materially affect the outcome of the
investigation or jeopardise the name of the university is foreseen.
6. Inspection of any experiments in loco may take place at any time by the
Faculty Committee for Research Ethics and Integrity or its proxy.
7. The information I furnish in this application is correct to the best of my
knowledge and that I will abide by the stipulations of the Faculty Committee for
Research Ethics as contained in the regulations.
Signed:......................................................... Date:............................
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3. Appendix-B
DETM ETHICS 002
UNIVERSITY OF PRETORIA
DEPARTMENT OF ENGINEERING AND TECHNOLOGY MANAGEMENT
Form for research subject’s permission
1. Title of research project
INTERVENTIONS IN IMPROVING MINING PRACTICES AND WORKING
CULTURE IN AFRICAN BARACK GOLD TANZANIA
2. I TERTIUS JAN NIEKERK hereby voluntarily grant my permission for
participation in the project as explained to me by ANAKI KARIGANI
3. The nature, objective, possible safety and health implications have been
explained to me and I understand them.
4. I understand my right to choose whether to participate in the project and that
the information furnished will be handed confidentially. I am aware that the
results of the investigation may be used for the purposes of publication.
5. Upon signature of this form, you will be provided with a copy.
Signed: ......................................................... Date:............................
Witness: ......................................................... Date:............................
Researcher: ......................................................... Date:............................
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4. Appendix-C-Survey Responses
Mining Practices and Working culture in Tanzanian mines
Question-1: Overall, are you satisfied,
dissatisfied or neither satisfied nor
dissatisfied with the mining industry?
Answered 50 Skipped 0
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Question-2: What are the common
complaints you hear from people regarding
the mining industry?
Answered 50 Skipped 0
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Question3: How can the complaints be
solved?
Answered 50 Skipped 0
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Question-4: Mining is considered as
hazardous. Are you satisfied with the
measures applied to reduce harm?
Answered 50 Skipped 0
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Question-5: What are the ethical
responsibilities with respect to population
and environment followed by gold mining
companies?
Answered 50 Skipped 0
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Question-6: Does your firm prefer local
labour or foreign labour?
Answered 50 Skipped 0
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Question-7: Is there any mechanism in
existence to train local populous and appoint
them, instead of hiring foreign labour?
Answered 47 Skipped 3
Question-8: Does your company try to bring
expatriates and local labour closer to each
other?
Answered 50 Skipped 0
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Question-9: What actions can your employer
take to build a better workplace?
Answered 50 Skipped 0
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Question-10: Is Government trying to
eradicate social problems caused by
mining?
Answered 47 Skipped 3